George and Harold, American song-and dance-men performing in Melbourne, Australia, have to leave in a hurry to avoid various marriage proposals. They end up in Darwin, where they take jobs as pearl divers for a prince.

They are taken by boat to an idyllic island on the way to Bali, (the location is unclear, but possibly in the Maluku Islands). They vie with each other for the favours of exotic (and half-Scottish) Princess Lala, a cousin of the Prince. The hazardous dive produces a chest of priceless jewels, which the prince plans to claim as his own.

After escaping from the prince and his henchmen, the three are shipwrecked and washed up another island. Lala is now in love with both of the boys and can't decide which to choose. Following further romantic complications, the boys participate in a traditional marriage ceremony, both thinking they're marrying Lala. In fact, she's being unwillingly married to the already much-married King while they end up married to each other.

Displeased with two men being married to each other, the volcano god initiates a massive eruption. After escaping it, the three end up on yet another beach where Lala chooses George over Harold. Undaunted, Harold conjures up Jane Russell from a basket by playing a flute and thinks that he's going to get her, but she too rejects Harold, and George walks off with both Jane and Lala. Harold is left alone on the beach, demanding that the film shouldn't finish and asking the audience to stick around to see what's going to happen.